Global Sourcing Potential Benefits and Problems
Six Sigma Article Review
Breyfogle, Forrest W., and David Enck. (May 2002) "Six Sigma Goes Corporate." Business Management. Issue 7. http://www.optimizemag.com/issue/007/management.htm
Six Sigma is a statistical term that measures how far any given process deviates from its ideal or perfect outcome. "We all dream of perfection -- of coming up with a flawless business plan and the optimal processes for executing it. But being perfect in these areas is a hard thing to define, let alone quantify. How precisely can you really measure success?" (Breyfogle & David Enck, 2002, 1) From the quantitative side of business theory, the Six Sigma strategy employs formerly purely numerical analytical procedures to the human and managerial side of the business equation.
The central idea behind Six Sigma is that if it can be determined how many defects are in a process, these defects can then be eliminated. It utilizes a systematic five-phase, problem-solving process called DMAIC: Define, Measure, Analyze, Improve and Control. The Six Sigma process begins by defining the problem, then measuring statistically the impact of the problem, analyzing the situation to find root causes of the problem, attempting to improve the situation once the causes are identified, and only then instituting long-term control or maintenance of the solution. (Breyfogle & Enck, 2002, 1)
According to the authors Breyfogle and Enck, Six Sigma is an appropriate strategy in most for-profit companies, where generating more "cash and customers" or addressing a lack thereof, is the primary concern of managers. This procedure can be valuable in changing company target policies and attempting to generate more revenue. For instance, the company may be lacking a clear understanding of the desires of the targeted customers. By finding out if the problem, as defined, if the wrong customers are being targeted, or the company is using the wrong advertising methodology, the company can then measures the impact of the problem, attempt to understand why the incorrect strategy was implemented by the corporate staff in charge of this department, and then put into a new solution to generate new target audience, making the new strategy or 'target audience' critical to a new company vision. (Breyfogle & Enck, 2002, 2)
Conclusion It seems that global sourcing is best way to go when expanding the business even though, domestic sourcing will provide familiar suppliers. "For example, Wal-Mart identifies common products used throughout the world and "determines whether there is an opportunity to improve quality, reduce costs and, by working with a best-in-class supplier, achieve better replenishment and new item introductions (1)." For instance, Wal-Mart has worked with its copy-paper sales supplier to
Future Global Corporate Strategy and International Management The emergence of strategic management has always been attached to military history (Tallman, 2007). Studies in this area reveal various examples where the strategic management of offensive and counter-offensive led to decisive victories. Within the corporate sphere, it emerged following the Second World War. The dramatic growth of world nations such as China, Japan, and the U.S.A. served a beneficial environment for large international
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These three strengths of their content methodology, depth of expertise in the Asian manufacturing sector, and commitment to being a leader in electronic enablement and IT form a defensible competitive position. As a result, the company is well positioned to attract investors. In supporting the contention that Global Sources is well positioned to attract investors based on the three unique strengths of a scalable content collection and management methodology, expertise
The last century has seen an increase in the level of international purchases which has been supported by the developments in transportation and technology. Goods can move faster than before with developments in logistics. The negotiation and forming contracts for purchase with companies and communicate with potential suppliers in distant countries is also easier than in the past with the internet and tools such as video conferencing and emails.
Change This study analyzes outsourcing trends in the next decade. The study assesses this by focusing on the past and current trends, problems and issues in outsourcing via semi-structured interviews. Major trends and processes will be revealed and assessed for their relevancy, depth and breadth. Companies belonging to most industries are very much considered to be the units that are vertically integrated, or so-called usual industrial firms (Stigler, 1951), where activities
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